Loan Modification

Making your payments more manageable

If you can’t afford your current mortgage due to a financial hardship, and you want to stay in your home, we may be able to change certain terms of the loan — such as the interest rate or the time allowed for repayment — to make your payments more affordable. Any change to the original terms is called a loan modification.

There are multiple loan modification programs available, including the federal government’s Home Affordable Modification Program. These programs offer different options for borrowers in different situations, but all are meant to help people keep their homes when facing a significant hardship. We’ll work with you to determine whether a loan modification or another option may work for you.

How a loan modification could help

You avoid a foreclosure sale. Even if one is already scheduled, we may be able to postpone it while we review your information.

You make lower payments. Your modified payment amount is based on your current financial situation and takes your hardship into account.

It may be less damaging to your credit score than a foreclosure sale.

Important considerations

A loan modification changes your loan permanently, so it may not be an option if you’re facing a temporary hardship.

If you have a home equity loan or any other liens on the property, they may need to be addressed separately from your first mortgage. Make sure you contact any other lien-holders to find out what options you may have.

See how the loan modification process works

If you’re considering a loan modification, here’s a step-by-step illustration showing how the process typically works, from start to finish.

Wells Fargo Bank, N.A. is required by the Fair Debt Collection Practices Act to inform you that if your loan is currently delinquent or in default, as your loan servicer, we will be attempting to collect a debt and any information obtained will be used for that purpose. However if you have received a discharge, and the loan was not reaffirmed in the bankruptcy case, we will only exercise our right as against the property and are not attempting any act to collect the discharge debt from you personally.